Calculate the overstatement in Discount Allowed.
Accounting
ScanSolve AI Answer
Answer
Step-by-step solution
2 stepsCalculate the overstatement in Discount Allowed.
The discount allowed was entered as
\140 000$\text{104 000}$140 000 - $\text{104 000} = $\text{36 000}$.Determine the journal entry to correct the error.
Discount Allowed is an expense account, normally debited. To correct an overstatement, we need to credit Discount Allowed. The corresponding entry will be to the Suspense account.
Debit Suspense\\text{36 000}$\text{36 000}$The final answer is
Was this helpful?
Try one yourself
A new problem that tests the same skill.
Still stuck on this one?
Ask a follow-up, and the answer starts from this question.
Got a different question?Ask your own question
More Accounting Questions
QCalculate the discount amount and percentage for an item originally priced at N 34,500 and sold for…QA trader sold a dress for Sh 7200, allowing a discount of 10% on the marked price. If the discount…QCalculate the net payable amount for goods after applying trade discount, VAT, and cash discount…QCreditors reconciliation An incorrect discount percentage was allowed on invoice INV150. The…QCalculate the Average Actual Profit.